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Dabhol revival unlikely by June 2006

Thursday, 09 Feb 2006
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Ratnagiri Gas & Power Pvt Ltd, the new owner of the beleaguered 2,184 MW Dabhol power project in Maharashtra, might not be able to restart the plant before earlier-envisaged deadline of June 2006.

As of today, construction of the LNG tank is yet incomplete. LNG supply agreements have not yet been entered into. Besides, though GE and Bechtel have offered assistance in reviving the project, no formal agreements have been signed.

It is likely that Phase I (740 MW) would be restarted with the 34,000 tonnes of naphtha lying in store. If operated for 24 hours a day, the fuel could last for 40 days. If in operation during peak hours only (3-4 hours per day), the fuel could last for up to four months. The cost of power, using naphtha would be around Rs.12 per kwh.

Maharashtra is currently facing a power shortage to the tune of 4,500 MW and is buying power from NTPC's Kawas and Gandhar plants in Gujarat at very high rates.

Also See:

Dabhol power project revival: Petronet LNG roped in (09-Jan-06)

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